I called Sydney Thomas yesterday in a hurry.
The just-paused Trump tariffs have proven to be an explosive moving target, and I wanted to get her take: What does it mean to be debuting a first fund at such a distinctly chaotic moment?
"Venture is a long-term asset class, so we’re not expecting to make a return in a day or in a year," said Thomas, founding general partner at Symphonic Capital. "I’ve been joking that launching a firm at this time requires next-level Zen mastery, because we have to be pushing our companies to be as resilient as possible—while doing the same for ourselves, as we build a new firm."
Though Thomas started Symphonic in 2022, the firm’s now officially stepping into the light: Symphonic has closed its $13.5 million first fund, and has been investing throughout its fundraising process. The firm’s LPs include Bank of America, Illumen Capital, Uplifting Capital, Candide Group, and Known Financial. The firm is especially interested in backing companies that serve overlooked communities, and its portfolio to date includes Lovu, Rocket Doctor, Bump, Scout, and Waverly.
"We’ve already seen signs of success within Symphonic," said Kimberli Cavazos Haywood, director of investments at Candide Group, via email. "We're excited to explore how venture can serve as a force for good…With the deep and persistent inequities in our economic system, we want to rethink the tools we use and adopt a more human-centered approach."
Thomas was the first employee at Precursor Ventures (which just announced its fifth fund this week). When she struck out on her own, Thomas chose to focus on fintech and digital health.
"We picked those areas because they’re such foundational verticals," she said. "They align with our long-term view and are out of the hype. We’re not subject to the whims of consumers, because these sectors are not only evergreen, but also necessary during the good times and especially during the challenging times."
Shruti Shah, who joined Symphonic as a partner in late 2022, is especially candid about what she thinks can change in venture, and the specific challenges of a founder. She joined Thomas, she says, "to be the VC she didn’t have" when she was building Craigslist challenger Move Loot, which sold to Handy in 2016.
"We got really big, really fast," she said. "We had a group of investors who changed their minds about our strategy, and asked us to change the business model. It didn't work the way we hoped, and we ended up selling the company for parts."
The experience has directly informed how Shah approaches founders: "How do you control your own destiny? Learn to trust your gut. Learn to build confidence in your decision-making. Really think about how you structure your process and what you’re tracking from the very beginning, so you can get to break even as quickly as possible."
Shah and Thomas, who first met in 2016 while Shah was an entrepreneur-in-residence at Silicon Valley Bank, go to concerts together, and have even planned Symphonic’s annual general meeting around New Orleans Jazz Fest.
"Everyone has a reference point for a symphony, even if you haven’t been to one," said Thomas. "You know, in theory, that it requires this harmonious collection of experts in their field, coming together to build something extremely beautiful that’s only possible because each instrument is unique."
Venture is in a tough spot that, despite AI hype and some positivity around exits in recent months, continues to look like it’ll be tough amid serious economic volatility. So, the sector needs new songs, so to speak.
"The reset in venture has officially happened, we’re not tied to anything from 2021, we’re not tied to the past," said Thomas. "There’s room to build outside of the lines if you're courageous enough to do so."
See you tomorrow,
Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
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